UAE's Economic Boom: A New Business Milestone

Record Number of New Businesses in UAE: Economic Growth and Forward-Looking Goals

The economy of the United Arab Emirates achieved another milestone in 2025: around 250,000 new companies were established in the country during the year, bringing the total number of operating businesses to more than 1.4 million. However, the ambitions don't stop here: the goal for the next ten years is to reach two million registered businesses. All this is thanks to flexible economic policies, new business regulations, and the country's investor-friendly environment.

Impact of Business Laws and Reforms

The Law on Commercial Companies, which came into effect in September 2021, gave significant momentum to business formation. As a result, nearly 760,000 companies have been established in the country since the end of 2021. Over the past four years, the business environment has become increasingly open and flexible, especially for foreign investors. Company registration has become easier, administrative processes have been digitized, and more sectors are offering 100 percent foreign ownership.

Particularly noteworthy is the role of small and medium-sized enterprises (SMEs), whose numbers have increased by 63 percent over the past five years. These businesses not only create economic value but also represent a significant job creation force, contributing to the country's population growth.

Population and Labor Market

The growth in businesses is also linked to the increase in population. By the end of 2025, the population of the United Arab Emirates had grown to 11.51 million, an increase of 490,000 from the previous year. This growth is not solely due to natural increase, but largely due to the influx of labor, who find work in various sectors of the expanding economy.

5 Percent Economic Growth in 2025

The country's economy achieved a five percent growth in 2025, driven largely by the performance of non-oil sectors. Among the industries, tourism, trade, logistics, real estate, and financial services contributed most significantly to GDP growth. The share of non-oil-based sectors in total GDP has already risen to 77.5 percent.

Dynamic economic growth is also supported by the forecast that GDP could grow by an additional 5.6 percent in 2026. The continuously increasing domestic demand and the influx of foreign investments play a crucial role in this.

Tourism: The New Growth Sector

Tourism has undergone unprecedented development in recent years. The contribution of the sector to GDP doubled from 6 percent to 15 percent between 2021 and 2025. This amounts to 291 billion dirhams, clearly showing that the country has become a global destination not only in terms of business but also leisure tourism.

Dubai and Abu Dhabi are increasingly visited not only for their iconic structures but also for their world-class events, exhibitions, and hospitality venues. Business tourism also plays a significant role in this growth, especially through international conferences and exhibitions.

Intellectual Property and Innovation

The increase in registered trademarks and intellectual property rights also reflects the presence of entrepreneurial spirit and innovation. In 2025, nearly 38,000 domestic and international trademarks were registered, clearly indicating trust in the UAE's legal and economic environment.

Over the past four years, the number of trademark registrations has increased by 74 percent, while the registration of intellectual property rights – such as copyrights or industrial designs – has shown a 124 percent increase. This trend reinforces the country's position as a region where creative and technological businesses are welcome to settle.

The Future: Diversified and Sustainable Economy

The UAE's long-term goal is to create an economy that is less dependent on oil revenues and instead focuses on innovation, knowledge-based industries, and the service sector. Achieving two million businesses in the next ten years is not merely a numbers game: a real diversification strategy underpins it, aiming to support new industries such as artificial intelligence, green technologies, or fintech.

In addition, expanding the business community also strengthens social cohesion: more businesses mean more jobs, greater consumption, and ultimately a more stable economy. The country's long-term vision clearly points towards inclusive and sustainable growth.

Summary

The year 2025 has undoubtedly strengthened the UAE's position as one of the fastest-growing and most investor-friendly economies in the region. The mass emergence of new companies, a growing population, sectoral diversification, and a spirit of innovation together create the ecosystem that forms the foundation of the country's future development. The target of two million businesses is not a dream – but a realistic, well-founded vision. And if there is a place in the world where this can be achieved, it is undoubtedly Dubai and the United Arab Emirates.

(The article is based on a report by the Minister of Economy and Tourism.)